We Still Believe in Free Enterprise
OBAMA ADMINISTRATION BELIEVES IN GOVERNMENT SOLUTIONS
"We just want to spread the wealth around." - Barack Obama, October 2008 Presidential Campaign
Little did we realize that this little admission to "Joe the Plumber" was only the beginning. President Obama appears to be rushing his agenda with defecit spending already up almost $1.5 trillion for fiscal year 2009 and climbing. The $780 billon government stimulus package has not slowed unemployment, which is now above 10%. Government bailouts of GM and Chrysler have now become government takeovers. Banks and other credit markets are also being strongly managed. The President is appointing various Czars to help manage the economy. The stimulus bill that was rushed through Congress as a crisis that needed immediate action has barely gotton off the ground (only about 10% spent at this time). What stimulus? It's a big government spending bill. Is this the change we were promised?
The Democrats blame all this spending on President Bush, but remember that the Democrats took over Congress in 2006 and they controlled fiscal 2008 and 2009 budgets. Also note that Bush's inattention to spending resulted in about $500 billion deficit. The Democrats have quadrupled that! How will we pay for all of this spending? Tax increases on the wealthy? "Spend and tax" is not a proven formula for growing the economy. Free enterprise and inspiring the private sector is the proven formula.
The Sky is Falling?
Now, more spending and regulation is being proposed. Cap and Trade legislation has passed the House and is in the Senate. This energy and environmental control bill will cost the private sector billions with little CO2 emission impact (In other words, it's a hoax). Many foreign countries like China and India will not play along because they want to continue to grow their economy. Remember, under President Clinton, the Kyoto Climate Treaty failed the Senate by 99-0. This kind of government regulation restrains economic growth, and everyone knows it.
If the economy does not grow, unemployment will continue to rise and income taxes will fall. Deficits will rise even more.
Next on the agenda is healthcare reform and government mandates. The private sector will also take a hit from this expensive plan (Cost estimates over $1 trillion). Will this grow the economy and create jobs? Taxes are proposed to help pay for the "improved healthcare."
- Individuals would be required to obtain health insurance or pay a 2.5% income tax penalty
- Employers with more than 25 employees would be required to offer insurance or pay a penalty
- Wealthy Americans would pay a surcharge on income taxes, another 1% tax for income over $350k and up to 5.4% income tax on income over $1 million
"The bottom line is that I think the President believes that the richest 1% of the country has had a pretty good run of it for many, many, many years," said White House spokesman Robert Gibbs.
Change your Strategy
At Michael R. Choate & Co., CPAs, we still believe in free enterprise and market driven solutions to grow the economy. Freedom has made this country great and our economy the envy of the world. A government "central control economy" will not work. Now is the time for you to adjust to this major change in Federal economic policy.
If you own a small business or professional firm and earn over $250k combined income (don't forget to add your spouse's earnings), you are a target for tax increases. Also, if you aspire to earn a combined family income of over $250k, you need to be aware of these tax increases. At Michael R. Choate & Co., CPAs, we welcome you and want to help you change your business and tax strategy to maximize your profits and minimize your taxes. See Time to Change your Strategy for more details.
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